Going sour: The industry may lose market share due to growing competition from other drinks

The Soft Drink Production industry has recently been characterised by a high degree of product innovation and challenged by changing consumer tastes. Health campaigns raising awareness of high sugar consumption have encouraged the proliferation of no- and low-sugar drinks. Accordingly, operators have accelerated the market release and promotion of healthier alternatives to traditional brands that appeal to health-conscious consumers. Familiar brands like Coca-Cola have retained market share in both their traditional and diet variations, yet rising competition from bottled water remains a prominent threat.Over the five years through 2018-19, industry revenue is forecast to decline at a compound annual rate of 0.6% to £4.5 billion...read more.

Industry Statistics & Market Size
Revenue
£4.5bn
Annual Growth 14-19
-0.6%
Forecast Growth 19-24
Profit
Employment
12,076
Businesses
240

Industry Threats & Opportunities

  • Operators have appealed to health-conscious consumers by promoting healthier products
  • Major players have increased their marketing expenditure, which has weighed on industry profit
  • Sales of healthier substitutes to soft drinks have been increasing, posing a sustained threat
  • Industry Report - Industry Analysis Chapter

    Operators in the Soft Drink Production industry have been challenged over the past period. Over the five years through 2018-19, revenue is forecast to decline at a compound annual rate of 0.6% to £4.5 billion. In recent years, health consciousness has increased and changed consumer preferences. Concerns regarding the high sugar content of industry products have intensified competition from the Bottled Water Production (IBISWorld report C11.071), Juice Production (IBISWorld report C10.320) and Fruit Drink and Functional Beverage Production (IBISWorld report C11.073) industries. While familiar soft drink brands have had some success in maintaining customer loyalty through aggressive marketing strategies, health-conscious consumers have sought diet varieties of traditional brands. To ...purchase to read more.

    Additional Insights for the Soft Drink Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soft Drink Production Industry are

  • Economies of scale
  • Establishment of brand names
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Health consciousness in the Soft Drink Production industry impact industry performance..

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    What's in this report

    What is the Soft Drink Production Industry?

    Firms in the Soft Drink Production industry carry out the end-to-end production of fizzy beverages. Carbonated water is added to soft drink concentrate or syrup, which is then bottled, capped and labelled. The industry also includes carbonated, flavoured mineral waters. Energy drinks are excluded from the industry.

    Industry Products
  • Cola
  • Fruit-flavoured soft drinks
  • Lemonade
  • Industry Activities
  • Manufacturing carbonated soft drinks
  • Bottling, capping and labelling drinks
  • Preparing carbonated beverages for and purposes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Health consciousness
  • Demand from supermarkets
  • World price of sugar
  • Average maximum temperature

  • Current Performance
  • Cutting out sugar
  • Aggressive advertising
  • Sustainability and automation
  • Chart: Revenue Growth

  • Industry Outlook
  • Health consciousness
  • Sugar tax
  • Increasing investment
  • Table: Soft Drink Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soft Drink Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Supermarkets
  • Pubs & Bars
  • Convenience Stores
  • Cafes & Coffee Shops

  • Key Selling Industries
  • Fruit & Vegetable Processing
  • Hollow Glass Manufacturing
  • Plastic Packing Goods Manufacturing
  • Sugar Production

  • Products & Services
  • Cola
  • Fruit-flavoured soft drinks
  • Lemonade
  • Other
  • Chart: Soft Drink Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Pubs and bars
  • Convenience stores
  • Food-service operators and hotels
  • Chart: Major Market Segmentation for the Soft Drink Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingTaxationDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Soft Drink Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soft Drink Production Industry

  • Industry Globalization
    Coca-Cola European Partners Great Britain Ltd, Britvic plc, A G Barr plc,
  • Table: Coca-Cola European Partners Great Britain Ltd - financial performance
  • Table: Britvic plc - financial performance
  • Table: A G Barr plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Soft Drink Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soft Drink Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbonated
  • Drinks that have undergone carbonation, which is the process of dissolving carbon dioxide in a liquid, resulting in a fizzy drink.
  • Mixer
  • Drinks, such as soda water and tonic water, used to dilute alcoholic beverages.
  • Pet Bottle
  • Bottles made of polyethylene terephthalate (PET) can be recycled, to reuse the materials and reduce the amount of plastic waste collected in landfills.
  • Stevia
  • A zero-calorie sweetener and sugar substitute extracted from the leaves of plant species Stevia Rebaudiana that has up to 150 times the sweetness of sugar.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Soft Drink Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soft Drink Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soft Drink Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soft Drink Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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